Trans India House Impex Limited (TIHIL) has reported a net loss for the quarter ended September 30, 2025, while also announcing the formation of a new subsidiary. The company's financial results and strategic moves highlight a period of transition and expansion.

Financial Performance

For the quarter ended September 30, 2025, TIHIL reported:

The company experienced a significant decline in revenue from operations, dropping from Rs. 2,359.23 lakhs in the previous quarter to Rs. 1,127.10 lakhs in Q2 2025. This decrease in revenue contributed to a net loss of Rs. 33.10 lakhs, compared to a profit of Rs. 17.77 lakhs in the previous quarter.

New Subsidiary Formation

During the quarter, TIHIL formed a new subsidiary named TIHIL IDA Group Private Limited, in which it holds a 51% ownership stake.

Rights Issue Utilization

The company reported that it has fully utilized the funds raised from its recent rights issue during the quarter and half-year ended September 30, 2025. The rights issue, which was completed on June 25, 2025, involved the allotment of 3,55,26,000 Rights Equity Shares at an issue price of Rs. 13.90 per share, raising a total of Rs. 49,38,11,400.

Balance Sheet Highlights

As of September 30, 2025, TIHIL's balance sheet showed:

• Total Assets: Rs. 11,871.03 lakhs
• Total Equity: Rs. 6,989.61 lakhs
• Current Liabilities: Rs. 4,881.42 lakhs

The company's financial position reflects an increase in equity share capital from Rs. 3,552.60 lakhs as of March 31, 2025, to Rs. 7,105.20 lakhs as of September 30, 2025, likely due to the rights issue.

Operational Focus

TIHIL continues to operate primarily in the trading of goods segment. The company's engagement in trading agricultural products accounted for Rs. 822.57 lakhs (72.98% of total revenue) during the quarter.

Trans India House Impex Limited has announced the incorporation of a new subsidiary company, TIHIL IDA Group Private Limited, marking a significant expansion into the consumer goods sector. The Certificate of Incorporation was issued by the Ministry of Corporate Affairs, Government of India, on September 11, 2025.

Key Details of the New Subsidiary

• Name: TIHIL IDA Group Private Limited
• Incorporation Date: September 11, 2025
• Trans India House Impex's Stake: 51% of equity share capital, voting power, and beneficial ownership
• Investment: 2,55,000 equity shares at Rs. 10.00 each
• Total Paid-up Capital: Rs. 50.00 lakh

Business Focus

The newly formed subsidiary will operate as a joint venture with IDA Impex Private Limited. Its primary activities will include:

• Trading
• Export and Import
• Sale of various consumer goods

The product range encompasses:

• Footwear and accessories
• Apparel and garments
• Handbags and fashion accessories
• Beauty products and cosmetics
• Jewelry and lifestyle products
• Leather goods
• Sports equipment

Financial and Regulatory Aspects

• The investment was made through cash consideration at face value.
• The transaction falls within the prescribed limits under Section 186(2) of the Companies Act, 2013.
• While classified as a related party transaction, it is not considered material based on Trans India House Impex Limited's latest audited financial statements for the fiscal year ending March 31, 2025.
• The investment aligns with the special resolution passed by shareholders at the 35th Annual General Meeting held on September 30, 2023.

Management Commentary

Mrugesh Ashwin Kumar Vyas, Company Secretary and Compliance Officer of Trans India House Impex Limited, confirmed the development in a regulatory filing. The company views this new subsidiary as a strategic move to expand its presence in the consumer goods market.

Market Implications

This strategic expansion into diverse consumer product categories through TIHIL IDA Group Private Limited positions Trans India House Impex Limited to tap into the growing consumer goods market in India. The joint venture structure with IDA Impex Private Limited suggests a collaborative approach, potentially combining the strengths and expertise of both entities.

Investors and market watchers will likely monitor the performance of this new subsidiary closely, as it represents a significant diversification of Trans India House Impex Limited's business portfolio. The success of this venture could have substantial implications for the company's future growth and market position in the competitive consumer goods sector.